Taking a Bite out of Credit Card Fraud
Despite attempts to diminish credit card fraud, it remains a leading threat to the financial services industry in the U.S.
Today, many fraud schemes exist—some old, some new. Methods of committing the crime range from skimming devices to spoof sites to stealing credit card solicitations straight from a victim’s house. The methods are becoming more sophisticated as usage rates for credit cards continue to grow, as personal information increasingly becomes readily available, and as Internet applications thrive. In the past few years, fraudulent charges have increased. Celent expects this trend to continue unless new measures are adopted to combat it.
"Historically, financial services companies have borne the brunt of fighting credit card fraud, and they have led the way in developing and deploying new tactics. Motivating merchants and consumers to do their part in fighting fraud has always been difficult," comments Ariana-Michele Moore, author of the report. "This past holiday’s online spending records, and increased awareness of identity theft, are shifting the tides. Today, all three parties to a transaction are looking for ways to stop card fraud."
In response, several solutions are coming to market; however, their ability to reduce or eliminate fraud remains to be seen, at least for some. The biggest problem faced by these solutions is driving consumer adoption without strong incentives. While some solutions are promising, others are simply placeholders for future measures.
This 32-page report will take a look at the current state of credit card fraud in the US and address the issues surrounding it. In addition to providing readers with a background of the latest schemes and challenges, this report will address the latest trends in technologies and their potential for long-run viability.